On Friday, June 14, T. Rowe Price’s collection of transparent active equity ETFs turned exactly one year old. Within just a year, these funds have displayed exceptional growth in value and AUM.
All five transparent active ETFs serve as core holdings in their respective segments and aim to provide investors with long-term capital growth. Each of the T. Rowe ETFs uses a unique strategy and asset selection methodology to provide results. All of these ETFs are actively manged to complement, or even outright replace, portfolio segments that have historically been saturated by index-based strategies.
Large-Cap Appreciation
The issuer’s largest transparent active ETF is the T. Rowe Price Capital Appreciation Equity ETF (TCAF). It primarily invests in large-cap options and can fill out a core broad-market U.S. equity role in a portfolio. The fund invests in a selection of about 100 high-quality securities, targeting assets with lower risk and higher return relative to the S&P 500 Index.
SMID Exposure
The T. Rowe Price Small-Mid Cap ETF (TMSL) gives investors access to a well-rounded portfolio of small- and mid-cap equities. TSML scrutinizes assets based on capital returns, operating margins, cash flow, and valuation, among other factors. By investing in SMIDs, the ETF provides investors with the potential to access undervalued assets while cushioning potential downsides through active management.
International Equities
For investors seeking international equity exposure, the T. Rowe Price International Equity ETF (TOUS) may be able to help. The fund invests in companies across the cap spectrum in various countries outside the United States and Canada. Regarding geographical exposure, the largest countries within TOUS are Japan, the United Kingdom, and France.
Growth in Focus
The T. Rowe Price Growth ETF (TGRT) offers an alternative take on large-cap investing by focusing on growth. The fund invests in large-cap equities that provide reliable earnings and cash flow growth. Additionally, securities within the fund are evaluated on quality factors that could benefit from market disruption or innovation.
Long-Term Value
Last but certainly not least, the T. Rowe Price Value ETF (TVAL) offers a value-focused perspective on large-cap equities. The fund targets investment toward companies with durable business models and promising long-term options, despite being undervalued at the time. TVAL’s long-term perspective can provide deep returns for patient investors, especially with an actively managed portfolio.
Within the first year of entering the U.S. market, these funds amassed over $2.1 billion in assets under management. The robust growth within these ETFs highlights the merits and potential rewards of using T. Rowe Price’s investment experience in active management strategies.
For more news, information, and strategy, visit the Active ETF Channel.
